Microinsurance in Uganda: A Case Study of an Example of the Partner-Agent Model of Microinsurance Provision - NHHP/FINCA Uganda - Health Care Financing Plan

This study reviews the partner-agent (P-A) model supporting the relationship between FINCA Uganda (FU), a Ugandan registered microfinance institute (MFI), and Nnsambya Hospital Healthcare Plan (NHHP), a health financing entity.

The study:

• Presents the mechanisms and practicalities of the model;
• Examines the satisfaction levels of the partners and the market;
• Identifies benefits and problems;
• Points out future potential applications;
• Reviews product development, testing and implementation processes;
• Provides information on the process;
• Identifies issues in the product cycle.

The study methodology was as follows:

• Field visits, interviews, document reviews;
• Use of Participatory Rapid Appraisal (PRA) and focus groups;
• Review of accounts, claims records and other relevant documents.

The paper argues that the PA model has:

• Allowed for new business development in ways that reduce risk to the microfinance institute (MFI);
• Offered innovative insurance products to MFI clients.

The paper offers the following summary of lessons learned from the research:

• Developing and testing a protocol is very essential to the product development process;
• Staff have to be trained well;
• Financial problems do not fall on the MFI;
• Premium prices must be structured to cover costs from the start;
• Donor funding could prove detrimental to the pricing of the product;
• Clients need to have a savings mechanism available to save for the periodic premium;
• Marketing has to be consistent;
• An MFI needs a simple information system.